The International Effects of the UMP Implemented by the Federal Reserve

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Introduction

This is a friendly (updated) version of my undergraduate thesis. In this project, I estimate a traditional VAR with exogenous variables to investigate the international effects of the implementation of unconventional monerary policy tools on the Mexican Economy, namely the Forward Guidance and the Quantitative Easing. You can see the python code in this Jupyter Notebook.

What is an Unconvetional Monetary Policy

Something super interesting. Forward Guidance and Quantitative Easing.

How Can We Measure these Effects?

The Wu-Xia shadow short rate.

Data

The Mexican Economy: Endogenous Variables

The US Economy: Exogenous Variables

Econometric Model

Insert some cool econometrics.

Make it Bayesian!

Results

Insert badass impulse-response functions and interesting discussion.

Conclusions

Yes, yes, yes. Conclusions.

Appendix

Model testing

Structural Breaks?

Markov Switching